DEVELOPING-TELECOMS

Developing Telecoms learnt from Li Ke from China Semiconductor Industry Association (CSIA) that the race of chips and the manufacturing of equipment is on to develop home grown solutions, and China already has a presence in the key areas which needed to move toward mid-to-high-end chip production. Li Ke believes that Chinese 28nm chips which can meet most of the market demand will be mass produced in one or two years.

Last year, China's IC industry generated over CNY750 billion and this is expected to reach CNY900 billion in 2020. Shared by Li Ke, IC manufacturing has made the greatest progress among the entire IC industry. China's IC production capacity last year was more than 20% of the world total, larger than any other single country. Li Ke thinks that the narrowing gap between China's IC manufacturing and the world-leading technologies is laying a solid foundation for the prominence of its IC industry, and a domestic chip manufacturing industry chain will be emerged with further advanced technologies.

Li Ke also stresses on the importance of producing 28nm chips. As mentioned by Li Ke, 28nm is the dividing line between low to mid-range and mid-to-high end IC manufacturing. Being able to produce 28nm chips means it can meet most of the demand for chips without relying on others.

Chinese government is actively backing for the chip sector. The State Council has issued the document "Several Policies for Facilitating the High-quality Development of the Integrated Circuit Industry and Software Industry in the New Era", which in part outlines new tax incentives for fabs and companies that use 28nm or smaller technologies. Other policies like "qualified integrated circuit projects or enterprises that have operated for more than 15 years shall be exempt from corporate income tax for the first ten years if they employ the 28nm process or more advanced nodes" is also included.

Developing Telecoms believes China already has the ability to mass produce 28nm chips completely on its own. After more than a decade, China has a presence at every part of the 28nm-technology industry chain and every major aspect for the strategic materials. National-level and joint enterprises projects are also advancing in key parts of China's 28nm chip industry chain such as lithography machines.

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